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STRATEGY KAZAKHSTAN 2050 III

STRATEGY KAZAKHSTAN 2050
NEW POLITICAL COURSE OF THE ESTABLISHED STATE
哈薩克斯坦2050 策略
Address by the President of the Republic of Kazakhstan, Leader of the Nation, N.A.NAZARBAYEV
Astana, 2012

2. COMPREHENSIVE SUPPORT OF ENTREPRENEURSHIP – LEADING FORCE IN THE NATIONAL ECONOMY
Domestic entrepreneurship is a driving force in the new economic policy. The share of small and medium enterprises in the economy must double by 2030.

Development of small and medium enterprises
Firstly, we must create conditions that enable people to develop a business and become a true participant of ongoing economic transformation in the country, rather than wait and expect the state to resolve all the problems. It is important to raise the general level of business culture and stimulate entrepreneurial initiative.
For that it is necessary to:
• Encourage the pursuit of small and medium enterprises for unification and cooperation, and create the system that would support and stimulate that.
• Develop the internal market by encouraging local business initiatives and ensuring minimal, but tight regulation.
• Consider establishing new, more rigorous system of accountability for government officials, who create artificial barriers for businesses.
• Improve support mechanisms for domestic producers and take all the necessary actions for protection and promotion of their interests, considering the new reality, including our participation in Eurasian Economic Space and upcoming membership in the WTO.

We need to create the necessary conditions and prerequisites to enable individual entrepreneurs and small business to grown into medium sized businesses.
Unfortunately, the current tax applied to SMEs prevents their growth and development. That is why by the end of 2013 the Government needs to introduce amendments to legislation, aimed at the clear separation of such terms as micro, small, medium and large business.
At the same time, we must not increase the burden on small and medium business segments. I instruct the Government to ban all the permits and licenses that have no direct influence on security of Kazakhstan’s citizens and replace them with notifications by the end of first half of 2013.
On a legal basis, it is necessary to establish conditions under which business will self regulate the control of the quality of their goods and services. We need to develop a new system for the protection of consumer rights, exempting them from multilevel system of judicial decision making.

New model of public private partnership: “Strong business – strong state”.
Secondly, to build a robust dialogue on the principles of public private partnership, it is necessary to continue the process of business consolidation, which will enable wide coverage and engagement of all entrepreneurs in implementation of this new strategy.
International experience demonstrates that consolidation of entrepreneurs within Chambers is one of the important factors of economy’s efficiency.

The Government together with “Atameken” Union has worked out a conceptual model of compulsory membership in the National Chamber of Entrepreneurs.
This model will ensure delegation of large powers and functions from state bodies to the newly created National Chamber of Entrepreneurs in such areas as foreign economic activity, vocational and technical education and , comprehensive service support for small business, especially in rural areas and single industry towns. The National Chamber of Entrepreneurs will become a reliable and competent partner to the Government.
In this regard I instruct the Government to develop the appropriate draft law and submit it to the Parliament in the first quarter of the year.

New stage of privatization – changing role of the state
Thirdly,
the state must change its role. We need to pursue a second wave of wide scale privatization. This is not a simple step, since this would mean redistribution of responsibilities between the state and the market. But we must take this step in order to maintain a high rate of economic growth.
Private businesses are normally more effective than state run enterprises Therefore we must transfer non-strategic enterprises and services to the private sector. This is a crucial step for strengthening domestic entrepreneurship.
The successful start of “People’s IPO” program became the first step in this direction. First and foremost, this is about distribution of national wealth to the people. JSC “KazTransOil” announced the placement of shares worth 28 billion tenge, demand for these shares is twice as high as supply.

3. NEW PRINCIPLES OF SOCIAL POLICY – SOCIAL GUARANTEES AND PERSONAL RESPONSIBILITY
Our main goal is social security and the well-being of our citizens. This is the best guarantee of stability in a society. There is a growing need within our society for an updated and more effective social capable of meeting our current challenges.
International experience demonstrates that there is no perfect and universal model of social policy, just as there is no society where all citizens would be satisfied by the existing social system.
Addressing the issues of social security and prosperity is a difficult and very serious task related to every citizen of Kazakhstan. Therefore there should be carefully thought out approaches.
I would like to present my vision of the principles we should follow. By taking them into account, we could correct our approaches to the issues of social justice and social security.

New Principles of Social Policy
Minimum social standards

First of all, the state, especially during a global crisis, should guarantee basic social standards to its citizens
Our main goal will always be to prevent poverty growth. Poverty should not become a social prospect for any citizen. We should establish basic social standards and guarantees, which should directly depend on economy and budget growth.

This should include:
• First of all, expanding the list of individual needs with inclusion of education and healthcare items (including for the unemployed and disabled for their better socialization), healthy nutrition and healthy lifestyle, meeting intellectual and information needs.
• Calculating the costs of individual needs based on actual prices (hence the need to improve statistics in the country).
• Gradual qualitative enhancement of living standards tied to economic growth.
Meeting these standards should define the volume of budgetary financing of the entire social sphere. This will increase transparency of the budgetary processes and ensure the funds are better targeted. I instruct the Government to develop respective legislation.

Targeted social support
Secondly, the State should render social support only to those groups who need it.
What needs to be done for that?
• The State will bear full responsibility for targeted support of socially vulnerable groups: retirees, disabled, ill children and others.
• It is necessary to constantly improve social security and retirement Ensuring the protection of mothers and children
• We should have clear training and retraining programs for the unemployed tied to labor market demands. The State should render social support for the unemployed provided that the person under that category masters a new profession and attends retraining programs.
• It is important to create conditions so that employers can actively hire socially vulnerable parts of our society, providing them with a salary. We must create conditions so that the disabled are employed. Only those who really are unable to work should receive our social benefits. We should favor those companies and corporations that employ the disabled and create conditions for them.

Addressing social imbalances in the regions
Third, we should focus on addressing social imbalance issues when it comes to developing our regions.
Poor economic performance of a number of regions impedes employment and widens the gap between rich and poor.
(1) First of all, we need to enhance coordination among our government agencies in terms of regional development. We aim to synchronize the implementation of all Government and Industry programs by addressing priority issues of regional development.

By the first half of 2013, the Government must define and budget the list of necessary and prospective projects in the regions.
(2) Over the past 12 months, we launched a single-industry town development program. Significant resources were allocated to create jobs, solve social problems and improve the work of local enterprises.
We will improve the quality of local government. This work is under my personal control.
At the same time, we need new effective mechanisms of leveling of social and economic conditions in the regions.
I instruct the Government, along with regional governors, to adopt a small town development program in 2013. It should become a long-term and create a whole range of sectoral projects in their bases. Their aim is to assist to building of a system of sectoral specialization of the regions, to become industrial and manufacturing of the satellite-towns of large agglomerations and, ultimately, increase the level of life of the local population and provide jobs for the village youth.

(3) We need to take measures to resolve complex migration problems that have an influence on labor markets in the regions of the country.
We need to strengthen control on migration flows from the adjacent countries.
As a prospective aim we are expected to create favorable conditions for the local qualified workforce in order to prevent their excessive outflow to the foreign labor markets.
In 2013 the Government will have to develop and approve a Complex plan to resolve the migration problems.

(4) Special attention should be paid to Kazakhstan’s border territories. Their potential is not fully recovered yet. It is necessary to make them more attractive for living. The Government, working with governors, needs to develop a series of additional measures to develop the border regions.

Modernization of the labor policy
Fourthly, we should modernize employment and salary policy.
(1) A key issue in the current global crisis is unemployment growth. Actual employment should be provided by all programs being implemented in the country, as the State as the Sectoral, but not only any their part. Therefore I task the Government and governors 2013 to:
• Integrate all previous programs of entrepreneurship development and business support.
• Elaborate mechanisms of allocation of the budget funds to the regions with the high rate of the unemployed and low-income people.
I personally task the Prime Minister and governors to take responsibility for implementing this updated Program
Half a year ago after my Article “Social Modernization: 20 steps towards the Society of Universal Labor” was published in “Trade Unions and Regulation of the Labor Activity”. Our aim is to create a new model of labor relations, combining entrepreneurship support taking into account the interests of employees.
It is necessary to accelerate adoption of the Law so that it would come into force sooner and protect interests of all employees.

(2) The Government needs to take measures to elaborate paying labor costs and minimizing the existing wage disparities.

The most important part of this new social policy is the protection of the rights of women and children
Protection of motherhood. Appeal to all the women.
Just as it is important to me personally so it is also important for Kazakhstan.
Dear women!
You are a pillar of family, and therefore – a pillar of the State.
The way our Kazakhstan develops in the future depends on the way we are bringing our children up today.

First of all, it is necessary to pay great attention to the upbringing of our daughters. They are our future wives, mothers, our heart and home keepers.
Kazakhstan is a secular state. By providing citizens the freedom of conscience, the State, nevertheless, will rebuff attempts to impose on our society that are contrary to our traditions and legislation.
We must create conditions so that the girls of Kazakhstan were able to obtain a quality education, good jobs and be free.
Kazakhstan has its own culture, traditions and customs. Women are an important part of our society and should not be restricted from driving cars, pursuing a career or forced to wear traditional dress that has never been worn in Kazakhstan.

Our people emphasize that: “A girl’s path is fragile”. A girl’s path, a daughter’s path is fragile, you can’t break it. A girl, a woman has always being an equal member of our society, and a mother is our society’s most respected figure. We must return unconditional respect to the woman – the mother, wife, daughter.
We must protect the rights of women. I am worried with the situation about growth of the domestic violence against women and children. There should be no disrespectful attitude to a woman and violence should not be tolerated.
The State should intervene to stop blatant cases of sexual slavery, attitude to a woman as commodity.
There are a lot of broken families in our country. The State should help singles mothers. We should provide women with flexible employment schemes and create conditions to work at home. The Law, State and I will be on the side of our women. We will create conditions so that women’s roles in the life of our country can grow. The modern Kazakhstan woman should pursue her career.
It is necessary to actively involve women in the State and public governance, especially on the ground in regions.

Children’s rights
In the peacetime we have thousands of orphans, our orphanages and shelters are overcrowded. Unfortunately, this is a global tendency and challenge of globalization. But we must withstand this tendency. Our State and society must encourage orphans adoption and building the family-style orphanages.
The number of cases of an extremely irresponsible attitude of men to women and children grows. This is not typical to our traditions and culture.
Children are the most vulnerable and unprotected part of our society and they should not be deprived of their rights.
As the Leader of Nation I demand the protection of the rights of every child.
Any child born on our land is a Kazakhstan citizen. And the State must care for them.
I am against divorce, it is necessary to educate our youth in the spirit of family values. “If the father cannot herd the sheep, the son cannot herd the yeanling“. Upbringing the children is task of both parents, not only mother’s.

But when divorce must occur it is the father’s duty to pay alimony. The State should support the single mothers and toughen the punishment for nonpayment of alimony.
Upbringing the children is huge investment into future. We should have precisely this approach in this issue and aspire to provide our children with the best education.
I have applied lots of efforts to provide the growing generation with large opportunities to gain a better education: the “Balapan” program is under implementation, Intellectual Schools, Nazarbayev University, “Bolashak” program are operating. As you may know, they can be attended only by well prepared or talented children. Preparing a child to this level is a parents’ duty.
The “All the best to the children” slogan must become a principle for all parents.
I instruct the Government:
• To drastically review the legislation in the sphere of motherhood and childhood protection as well as family and marriage.
• Toughen punishment for crimes against women and children the and for infringing related legislation, including the most minor cases.
• To reform the family support system that includes material and non-material incentives such as benefits in taxation, healthcare and social services, providing new opportunities in the labor market and similar measures. We must get rid of a parasitical behavior and help women with an active life believe in their strength and abilities.
• Prevent gender discrimination and work to provide the gender equality and equal opportunities for women and men. In this case I first of all address the employers.

Health of the nation is basis of our successful future
Our healthcare modernization requires us to introduce common standards of quality of medical services and improve and unify the equipment and supply of medical institutions.
Key priorities in healthcare
• To provide affordable medical services at high standards of care.
• To provide diagnosis and treatment of a wide range of diseases.
• To develop a better system of preventive medical care, placing a larger emphasis on the provision of information to the population about standard forms of illness and their prevention.
• Introduce services such as smart medical care, distanced prophylaxis and treatment, and electronic medical care. These new types of medical services are in high demanded in a country the size of Kazakhstan.
New approaches in healthcare for children
• Introduce new approaches in healthcare for children under the age of 16.. It is necessary to fix it in the minimum standards of life by the Law. This step will be an important contribution into provision healthcare of the nation.
Improving medical education system
• Improve Kazakhstan’s medical education system through the development of a network of specialized educational institutions integrating everyday practice as much as possible into the education process.
• Place a higher degree of importance to the practical scientific and research component (R&D) of the medical schools’ activity. Higher education institutions should particularly concentrate on global knowledge and technological achievements replicating a system of university hospitals, like in the US, which are the largest and most effective medical centers. We must develop public-private partnerships in this area too.
• Create conditions for the private medical care growth. In the developed world the significant part of the medical service if provided by the private sector. We should create conditions for a rapid transition to private hospitals and polyclinics.
• Enshrine in Law international accreditation of the medical schools and institutions.

Quality of medical care in rural areas
Despite making up over 43% of our population the quality of the medical care in rural areas remains poor
Physical training and sports
Physical training and sports should become a special area of interest for the State encouraging healthy lifestyle as the key to a healthy nation. We must address the shortage of sports facilities, infrastructure and equipment in our country making these affordable for all. In this regard the Government and local authorities should take measure for development of physical training, mass sports and the construction of physical training facilities basing on model projects, including those in the yards. This work should commence in 2013.

4. KNOWLEDGE AND PROFESSIONAL SKILLS ARE KEY LANDMARKS OF THE MODERN EDUCATION, TRAINING AND RETRAINING SYSTEM
In order to become a developed and competitive nation we must become a highly educated nation.
In the modern world the simple embracing literacy is clearly not enough. Our citizens must be ready to permanently gain new working skills on the most advanced equipment using the most modern production techniques.
We must also place a large level of importance to the functional literacy of our children, and the growing generation as a whole. It is important that our children are well adjusted to modern life.

Our priorities in education
Extending “Balapan” program until 2020

(1) As in the whole world, Kazakhstan needs to shift to new methods of the preschool education, You may know that I have initiated the Balapan program, the main aim of which is to equalize the starting opportunities of our children. Since implementation 3 956 new kindergartens and mini-centers were introduces.
Taking into account Kazakhstan’s continuing demographic growth into account, I have decided to extend the Balapan program till 2020. I task the Government and governors to achieve the 100% coverage of children by preschool education and training.

Developing engineering education system
(2) Taking the “Kazakhstan 2050” policy into account I task the Government, starting from 2013, to development an engineering educations system that provides educations in modern technical specialties with international standard certification.
Vocational and higher education should be oriented to the current and prospective demands of the national economy in. This will assist in resolving employment issues for the population.
Higher education institutions should not limit themselves to purely educational functions. They should create and improve their applied science and R&D divisions.
Those higher education institutions that have been guaranteed the academic autonomy must not limit themselves to improvement of their curricula and must actively develop their R&D activities.

Developing system of social responsibility in education
(3) The social responsibility of the private business, non-government and charity organizations should be demonstrated in the sphere of education.
We must focus first of all, on providing assistance to youth who are unable to pay their education, in gaining worthy education.
It is necessary:
• To create a network of the public-private partnership for development of the higher and medium education.
• Develop an a multistage system of the education grants.
• Create a specialized education system of the R&D and applied education including regional specializations across the whole country.
• To fix in Law the obligatory production practice at enterprises starting from the second course of education.

Modernization of teaching methods
(4) We expect to implement modernization of teaching methods and actively develop online education systems, creating regional school centers.
• We should intensively introduce innovative methods, solutions and tools into the home, including the distance education and online education that is affordable for all.
• Remove outdated scientific and educational disciplines, with simultaneously improving demand in new areas.
• To change directionality and accents of the curricula of the medium and higher education, including teaching practical skills and gaining practical qualifications.
• Create entrepreneurship oriented curricula, educational courses and institutions.

New innovative research development policy
As the global experience demonstrates, recreating the whole innovative production cycle in a separate country means reinventing the wheel. It is a very expensive and not always fruitful, productive activity.
A separate scientific base founded on the experience of generations of scientists, terabytes of information and knowledge and historically established scientific schools is needed for the success.
Not all countries are able to stay on the edge of new technological wave, to create absolute innovations. This is what we have to clearly realize.
Therefore we should establish a realistic and pragmatic strategy.
We must concentrate on the non-capital-intensive research and development.

Technology transfer
We must transfer the necessary technologies and training the specialists for their implementations. EXPO-2017 must give an impetus to this process and help us to elect the newest technologies for development of the future energy.
We are a young nation and we will make it.
Besides, we can actively participate in large-scale international R&D projects. This will enable us to integrate the efforts of our scientists with Foreign R&D specialists on strategic innovative directions. Our aim is to become a part of the global technological revolution.

Cooperation of science and business
• In 2013 we must take measures to gain the full cooperation of science and business. I task the Government to unveil the intersectoral areas with the technology transfer ability and to create a demand from the large subsoil users and national companies.

Roadmap of development prospective national clusters
• Develop clear Roadmaps of development for prospective national clusters.
• Accelerate legislation defining private-public partnerships. Our aim is to introduce the most advanced tools and mechanisms of these partnerships.
• Revision legislation that regulates copyrights and patents. The Government should analyze all previously issued patents and registered copyrights by 2014 for their probable commercialization.

Fellow citizens!
I would like to especially address to our youth.
My announcement today of a new political and economic course is aimed to provide you with the best possible education, which will mean an even better future.
I rely on you, the new generation of Kazakhstan. You should become a powerhouse of this policy.
As the Head of State I have done my best to provide you with all necessary conditions for your education and growth. I have created a world class University, intellectual school and established the Bolashak program.
A new concept of the Youth State Policy is underway. All conditions will be created for you.
The State makes everything to open new opportunities for you. Today you have opportunities your parents wouldn’t even dream about.
Remember: your personal success is success of your parents, the success of your relatives, the success your families, the success of all your fellow citizens and most of all the success of our Homeland.

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